When it comes to the FX market, every traders’ top priority is to make unlimited profits. Therefore, in this article, you'll learn how to use Forex trading signals to capture more profitable trades and to grow your trading account.
March 5, 2019 | AtoZ Markets - The foreign exchange (Forex) market as you may have heard is a great platform where you can make huge amounts of money. However, if proper care is not taken, the FX market can also be a scary place to lose all your money. Hence, it is the top priority for the team at AtoZ Markets to educate and share with you the best strategies to prevent or minimize losses in the global forex market.
Before jumping into Forex trading, it is important for every trader to know one of the most important tools with which to trade successfully and one of them being Forex signals. Regardless of your experience as a forex trader, whether you are a novice or a professional, without the signals, there is no trading.
But how does Forex signal Work? You may even be wondering how to use Forex signals or how you can choose the best Forex trading signals' provider. We will provide satisfactory answers to all of these. To begin, let's consider first how Forex trading signals work.
How Forex trading signals work
Each Forex trading signals is unique since they rely on different analysis of the fx market. Overall, market experts who produce these signals are guided by two main methods; the first is technical analysis while the second is fundamental analysis.
Regarding the first method, financial analysts make their prediction by studying historical price charts, past market data and sometimes indicators to determine future price movement. Meanwhile, the second method examines current events and the analysis of how they might affect future price movement, short and long term periods.
Some signals, however, are based on automated computer analysis of the previous and current trend of the market. This automated signals can be taught by experienced traders to react to different events and the system produces the signals on its own. In other words, a trader can insert his trading decisions directly into the system and convert them to buy and sell signals.
One of the advantages of this system is that it eliminates the negative effects of human psychology which might affect a human’s judgment and cause him to make a poor decision. While none of all these signals is 100% accurate, they all exhibit some level of accuracy.
Let's now proceed and show you how to use trading signals like a professional trader.
How to use Forex trading signals in 6 profitable ways
1# Minimizes risk maximize profits
When used effectively, Forex trading signals can increase your gains while reducing the risks that newbie traders might encounter when trading, thus making it easier to make informed decisions during trading.
2# Easy Trading
While research and analysis are very important in Forex trading, they can be time and effort consuming. However, with Forex trading signals, FX traders are no longer required to spend a lot of time studying charts, graphs and patterns before making their trading decision since analysis can be done within a short space of time with the help of FX Signals.
3# Start trading immediately
With the help of Forex Signals, traders can know when to jump on a trade immediately since they tell you the entry and exit point by monitoring and analyzing the market. Without the knowledge of signals and the Forex market, you could hold a position for too long a time and lose your money, or you could exit prematurely and lose a potential life-changing profit.
4# Specific Schedule
Daily Forex signals are released every day at a fixed time depending on the choice of the trader. This means that you need not waste time in monitoring the market for entry and exit points. Hence, it is important to subscribe to these signals so that you can quickly make your trading decisions.
5# Quick Learning Curve
With Forex signals, traders are helped to have a good idea of how market movement impacts their investment. With the help of reverse math, the individual trader is able to understand how these signals correspond to their trade while also providing the opportunity to explore how to arrive at such signals.
6# Support and Advice
Forex traders can take advantage of the support services offered by these signals on information regarding the signals as well as any other things you don’t understand about it.
Now that you have seen the top six beneficial ways on how to use forex trading signals we'll next show you how to pick a reliable signal provider.
How to choose the best signal provider
Admittedly, the task of choosing the best Forex Signals is not an easy one because there are a lot of signal providers. But you will find it easier to choose the right one if you consider the steps below.
- Real Capital: Make sure that the Forex signals provider of your choice is trading in real capital, this means that they are very serious in their business.
- Structure: As a forex trader, you need to ensure that the signal is in a well-structured format. In other words, it must have a well-defined entry price, it must be able to stop loss as well as take the profit price.
- Avoid Unrealistic Profit: Be wary of signal providers that promise unrealistic profits from a trade. This type of Forex signals is not reliable since they can be generated by robots.
- Trade Monitoring: Since forex trading moves with the news and fundamental issues in the world, a good signal provider should be able to update the status of the trade and should also be concerned with the current market situation.
- Users Reviews: It is essential to analyze the track record of the signal provider before subscribing This you can do by going through as many as possible user reviews that you can find on their website or in forums and see the comments of previous users because they are the best analyser of a service. When you find positive reviews, you may consider it as reliable.
AtoZ Markets offer free Forex trading signals
It is noteworthy, that these services are provided by Forex brokers, professional traders or some market analysts. While some of them are offered for free, others for a fee that may vary from one Forex signal service provider to another.
At AtoZ Markets, we offer free Forex signal services to leading currency pairs like EUR/USD, GBP/USD, and USD/JPY. In order to be able to get daily Free Forex Signals in an email, you must register on AtoZMarkets.com. Once you do, we will send you 2-4 signals for major currency pairs.
Since May 2016, all signals subscribers confirming to receive Free Forex signals receive an email notification each time a signal is posted on the website. Please note that you must log in to AtoZ Markets to see the content of the signal.
We base our signals on technical indicators alongside with a fundamental analysis of the market and trend which are followed very closely by our market expert Yury Safronau. With his PhD in Finance, he is a full-time professional Forex trader and private fund manager since 2009.
Think we missed something? Let us know in the comments section below.